One stock that broke out bigtime to close out last week is Medicine Man Technologies Inc (OTCMKTS:MDCL). The booming rip took out multi-month resistance to close above the $2/share level for the first time since Q2 2018. The technicals here are very strong right now, so it makes sense to catch up with recent moves. At the top of the list is the company’s recent announcement of a binding agreement that is expected to lead to the near-term acquisition of the Colorado licensee, Medicine Man Denver (MMD).

According to the release, “MMD is one of the pioneering operators that helped establish the burgeoning cannabis industry over the past decade, with brand recognition far beyond its immediate market. Its operations include one of the largest indoor cultivations in the state of Colorado as well as four retail locations with combined sales that have kept it in the top tier of operators in the state.”

Established in March 2014, the company secured its first client/licensee in April 2014.

To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Oklahoma, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa.

The Company continues to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company’s highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will “share” the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.

The company also provides licensing and seminar services. In addition, it engages in retail operations of cannabis products. The company was founded in 2014 and is based in Denver, Colorado.

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As noted above, MDCL just announced a binding agreement that is expected to lead to the near-term acquisition of the Colorado licensee, Medicine Man Denver (MMD).

Traders will note 66% added to share values of the company over the past month of action. Furthermore, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running nearly 140% over the long run average. This should not be overlooked with the stock trading on a float that is limited at just 20.7M shares.

“Building upon MMT’s established expertise as consultants that have helped win licenses and establish operations in 17 states with over 100 clients, these moves are keeping the promise of Medicine Man Technologies’ vision to become an operator in this space,” says Andy Williams, Medicine Man Technologies’ Chief Executive Officer. “Once officially brought into the fold, MDCL’s annual revenue run rate will exceed $40 million. We couldn’t be more excited about what the future holds.”

Currently trading at a market capitalization of $57.09M, MDCL has a reserve ($530K) of cash on the books, which is balanced by about $273K in total current liabilities. MDCL is pulling in trailing 12-month revenues of $8.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 400.6%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $MDCL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $MDCL, either long or short, and we have not been compensated for this article.

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